Cresco Labs Acquires Assets in Massachusetts with First Cannabis Harvest Planned for Spring 2019
Acquisition of Cultivation, Processing and Dispensary Adds Key Assets To National Footprint
CHICAGO–(BUSINESS WIRE)–Cresco Labs, (CSE:CL) one of the largest vertically integrated multistate cannabis operators in the United States, today announced a definitive agreement to acquire 100% of the shares and membership interests of Hope Heal Health, Inc. (“HHH”) and an affiliated real estate entity. The HHH assets include state registration and licensing that will allow for cultivation, manufacturing, processing, and the establishment and operation of a medical marijuana dispensary, with the ability to obtain up to three medical marijuana dispensary licenses and three adult-use dispensary licenses. HHH has entered into host community agreements with the Massachusetts municipalities of Rockland, North Attleborough and Fall River for medical cannabis dispensaries, subject to site approval, and is in the process of applying for adult-use licenses from the Massachusetts Cannabis Control Commission. This transaction is not a material transaction for the company and closing is expected to occur in the first quarter of 2019, subject to receipt of applicable regulatory approvals and other customary closing conditions.
Massachusetts adds another attractive, high value market to our national footprint.
Charles Bachtell, CEO of Cresco Labs
Up until now, the medical patients of Massachusetts have had limited access to relief. We look forward to utilizing our strong capital resources, proven executional abilities, and our vertically integrated and streamlined growth-manufacturing-retail model to serve these patients and develop meaningful market share as we have in Illinois and Pennsylvania.
HHH’s 150,000¹ square foot cultivation facility in Fall River planted its first crop this week with an expected harvest in the first quarter of 2019. Cresco Labs has proven its execution efficiency with an unparalleled speed to market in the state of Pennsylvania, where it operates growing and processing facilities and three retail stores. Cresco hopes to achieve similar accomplishments in Massachusetts, subject to site approvals and barring any unforeseen delays.
About Cresco Labs, LLC:
Cresco Labs, based in Chicago, is a leading U.S. cannabis company with experienced management, access to capital and a demonstrated growth strategy. As a differentiated grower, processor and retailer of premium cannabis with operations in seven states (Illinois, Ohio, Pennsylvania, Nevada, California, Arizona and Massachusetts), and approval pending in two more states (New York and Maryland), the company focuses on entering markets with outsized demand potential, significant supply constraints and high barriers to entry. Its unparalleled speed-to-market gives Cresco a distinct competitive advantage as it replicates its model to expand its national footprint. Cresco’s proven ability to execute is complemented by a well-defined brand strategy that is tailored to all major consumer segments: everyday cannabis, medicinally focused, connoisseur grade, and chef inspired edibles by James Beard Award-winning pastry chef Mindy Segal. Learn more about Cresco Labs at crescolabs.com.
¹150,000 square feet represents the total size of the existing structure. The first phase of construction of 40,000 square feet is currently underway which will include canopy space, processing, office and a retail dispensary. The remaining 110,000 square feet will be gradually built out throughout 2019 based on product demand.
